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2 • CLUBS AND PUBS MANAGER WINTER 2017
NEWS
REVAMP OF 457 VISA SYSTEM
NEEDS TO RECOGNISE HOSPITALITY
INDUSTRY'S SPECIFIC NEEDS AND
PROTECT REGIONAL AUSTRALIA
Australia's peak hospitality body, the Australian
Hotels Association (AHA), has called on the federal
government to consider the specific needs of the
hospitality sector in the design of a new temporary
working visa system, following the announcement
by Prime Minister Turnbull that the current 457 visa
system would be scrapped.
AHA says that while full details are not currently
available, it is important that the government
recognises the specific skilled labour needs of the
hospitality sector, as it is currently undergoing its
largest ever expansion.
'The hospitality industry is growing at unprecedented rates
at the present, and the demand for skilled labour is at all-
time highs with this complete transformation of Australia's
hotel industry,' says AHA CEO Stephen Ferguson.
'Retention of chefs and cooks in the skilled occupation
list is a must. Australia's hospitality sector has
responded with a wide range of training and career
development programs, but with such a rapid increase
in tourism it is impossible to meet the demand for
skilled labour in the short term through local channels,
especially in regional and remote Australia.
'We will be happy to work with the federal government
to ensure that its objective of growing local
employment is met, while also encouraging growth
in the hospitality sector through carefully targeted
temporary skilled worker placements, particularly to
support regional Australia,' says Ferguson.
MINIMUM WAGE INCREASE TO PUT
JOBS GROWTH IN THE HOSPITALITY
SECTOR AT RISK
Restaurant & Catering Australia (R&CA) was
disappointed by the Fair Work Commission (FWC)
announcement of a 3.3 per cent increase to the
minimum wage, with the decision putting jobs growth in
the hospitality sector at risk.
As a result of this decision, the national minimum wage
will increase to $694.90 per week, or $18.29 per hour as
of 1 July 2017. R&CA argues that a 2.4 per cent increase
is sufficient for both this year's and last year's Annual
Wage Review.
R&CA CEO John Hart says that increases in the minimum
wage will have a disproportionate impact on service-based
businesses, such as those within the hospitality sector.
'Today's 3.3 per cent minimum wage increase hits small
business operators in hospitality and other service-based
sectors where they can least afford it.
'The already exorbitant cost of wages is one of the
biggest reasons these businesses choose not to hire
more staff.
'This year's minimum wage increase, on top of last year's
increase, will put at risk the 84,300 jobs that the sector is
expected to generate by 2020,' says Hart.
Hart also says the persistent growth in the minimum
wage was not sustainable for businesses in the café,
restaurant and catering sector, and would lead to
businesses choosing to hire fewer staff.
'These businesses are already operating on incredibly
thin profit margins, and a 3.3 per cent increase in the
minimum wage will give small business operators no
choice but to cut back on staff.'
INDUSTRY NEWS